A long-serving solicitor who allowed a property transaction to happen with no checks on the seller has been fined more than £15,000.
Timothy Gray, a solicitor for 47 years, was found to have failed to carry out due diligence on the third party account details provided by a client. Payments were then made to a Chinese bank account that did not have any connection with the true owner of the properties.
The Solicitors Regulation Authority had been alerted by Gray’s firm, Newcastle practice Mincoffs Solicitors, which reported concerns that it had been involved in a vendor fraud.
An investigation identified multiple instances where Gray had caused the firm to fail in its obligations under money laundering regulations. A review of nine of Gray’s cases found none where he had conducted an adequate client and matter risk assessment. On the sales of two properties, Gray did not adhere to the firm’s policies, controls and procedures and failed to do due diligence on client files.
Gray admitted breaching the part of the code of conduct which states that solicitors must keep up to date with laws and regulations. Because the sale payments were made to non-clients, he also admitted a technical breach of the rule preventing client accounts from being used as a banking facility.
The SRA accepted that Gray had cooperated with the investigation and shown remorse, but said these were serious breaches that could have led to money laundering.
‘The conduct showed a disregard for statutory and regulatory obligations and has caused harm, by possibly facilitating dubious transactions,’ added the regulator.
The fine level was set at halfway between 16% and 40% of Gray’s gross annual income, taking account of Gray’s experience and the fact that this matter appeared to form a pattern of behaviour.
Taking account of mitigation, he was fined £15,075 and ordered to pay £600 costs.
